2-6-2023 (KUALA LUMPUR) The future looks uncertain for hundreds of Malaysians employed by Panasonic as the manufacturing giant contemplates shutting down its factories in the country. Panasonic Manufacturing Malaysia Bhd (PMMA), the Malaysian arm of the Japanese company, is reportedly considering the closure of its domestic operations due to management issues that led to the termination of its executive director and 15 managers, as reported by news portal Malaysiakini.
The potential closure would directly impact the Panasonic Appliances Refrigeration Devices Malaysia Sdn Bhd located in Melaka. If the closure takes place by the end of the year, it would put around 500 Malaysian workers and 95 foreign staff at risk of unemployment. Another unit, Panasonic AVC Networks Johor Malaysia Sdn Bhd, is also said to be in the process of arranging a shutdown before the end of 2023, although the exact number of affected workers remains unclear.
Over the past five years, the company has already laid off 689 Malaysians, including outsourced and temporary workers. Furthermore, 392 migrant workers were sent home, despite the creation of 63 new job opportunities for Malaysians in 2020.
PMMA has faced legal challenges, with two lawsuits alleging that former suppliers, executive director Chen Ah Huat, and employees defrauded the company of millions of ringgit by falsely claiming payment for undelivered work. Following the lawsuits, PMMA initiated downsizing measures, resulting in the loss of an additional 75 workers from its SA1 kitchen appliances plant. The company cited labor costs as a factor behind the downsizing, as well as the implementation of greater automation and realignment within the global Panasonic Group.
